I am strongly of the view we have seen the bottom of the emerging market sell off and it’s now time to increase exposure to the best structural growth stocks in Asia. It’s time to pick up the BATS…Baidu (NASDAQ: BIDU), Alibaba (NYSE: BABA), Tencent (HKG: 0700) and Samsung (KRX: 005930).
Firstly, I want to again explain what happened in emerging markets (EM) and why you are getting an opportunity to buy structural Asian growth stocks very cheaply.
I thought it would be best to quote directly from the number one rated macroeconomic strategy team at Vanda Securities, based in Singapore. They issued a note this week titled “5 EM charts that scream buy”. The full note and chart pack is below.
1. EM equities have experienced the largest outflows in post-crisis. More than half of the money that flowed into the asset class between Jan 2016 and Jan 2018 has already left. Both in absolute and relative terms, outflows have been much larger than in previous EM sell offs, like the taper tantrum or the run-up to the Fed's hiking cycle.